Lessons pay life dividend

BUSHEY Meads school in Hertfordshire was the setting where I would watch a group of teenagers being taught personal finance. On a rainy morning, I did consider the merits of bunking off my first lesson in ten years, but a looming deadline - and the possibility of detention - spurred me on.

I was expecting to find a group of bored teenagers. But, to my surprise, the eight 16 to 17-year-olds were enthusiastically answering questions about the euro and basic banking, such as borrowing and spending with a budget.

The day's lessons were being conducted by two NatWest bank employees, June Wilkinson and Maxine Norris. The bank offers a financial teaching programme called Face To Face for 2,573 secondary schools in England and Wales. Schools that sign up have NatWest staff on hand to help teachers tailor lessons.

Class teacher Elaine Pinkus, 49, says: 'The lessons are a great way of preparing students for working life. They are starting to think about what pensions, Isas, life assurance and other banking services have to offer.'

By the end of the class, the students had learned practical basics about banking, and how to think for themselves when budgeting.

It seemed all the more important as most of them already had an income from a part-time job and, judging by the mobile phones and designer clothes, enjoyed spending cash.

Student Nick Tidball, 17, says: 'I have learned loads from the lessons. I have a part-time job that pays £80 a week. I now pay it into a savings account, and when I start a proper job I'll start paying into a pension.'

Teaching material from NatWest includes information on bank accounts, credit card services, pensions, investments and, crucially, money management and debts. Some of the more exciting areas covered are setting up a business bank account and raising finance.

The Financial Services Authority has also got in on the act, last month launching its own personal finance resource pack, called Make The Most Of It, for teachers. This covers five areas for 14 to 19-year-olds: saving for retirement; credit and debt; insurance; investment and buying goods over the internet.

Howard Davies, FSA chairman, says: 'Our mission is to invest in education today so that tomorrow's consumers will be more financially literate.'

The Government's initiative is also aimed at teaching youngsters how to avoid debt, which has reached a staggering £720bn nationally. And a raft of financial scandals from big City firms and dodgy sales tactics by some financial advisers mean the Bushey Meads class needs to be well versed in business and money skills.

Personal finance teaching is being introduced through Personal, Social and Health Education and Citizenship classes in schools.